Carole Owns 75% of Pet Foods,Inc

question 35

Multiple Choice

Carole owns 75% of Pet Foods,Inc.As CEO,Carole must travel extensively and does so on the company jet.In addition,she also uses the jet to take several personal vacations.Carole reports the value of the personal use of the jet,$40,000,as additional compensation.Which of the following is true in terms of the corporation?

• A)The corporation includes $40,000 as miscellaneous income.
• B)The $40,000 has no impact on the corporation's income tax.
• C)The corporation takes a deduction of $40,000 for compensation expense.
• D)The corporation takes a deduction of $40,000 for dividend expense.

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Definitions:

Sample

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Frequency Distribution

The representation of data that shows the number of instances in which a variable takes each of its possible values.

Frequency Distribution

A summary of how often different values occur within a dataset, usually presented in a table or graphical format.

Hair Color

An attribute or variable often studied in genetics or sociology, reflecting the pigment of hair on individuals.